In a bold move to tap into India’s growing IT hardware manufacturing sector, Dixon Technologies, a leading homegrown electronics manufacturer, has announced the launch of a wholly-owned subsidiary
In a bold move to tap into India’s growing IT hardware manufacturing sector, Dixon Technologies, a leading homegrown electronics manufacturer, has announced the launch of a wholly-owned subsidiary called Dixon Teletech. This new venture will focus on manufacturing and dealing in IT hardware components, products, and equipment. The announcement comes as India is rapidly becoming a hub for electronics manufacturing, driven by government incentives and the push for local production.
On November 4, Dixon Technologies officially confirmed the establishment of Dixon Teletech, a subsidiary aimed at assembling and producing key IT hardware components. Though the subsidiary was incorporated on September 28, the financial backing was secured only recently when Dixon Technologies paid the subscription money for the new company.
In a BSE filing, Dixon Technologies outlined that Dixon Teletech would focus on manufacturing a wide range of IT hardware products—from computer components to complex equipment. This move comes as part of Dixon’s strategy to increase its footprint in the IT hardware manufacturing sector in India, a space that’s seeing rapid growth.
Dixon Technologies is making a significant leap by expanding into IT hardware production. As part of its expansion strategy, the newly-formed subsidiary will focus on producing:
The company revealed it had subscribed to 10,000 equity shares of Dixon Teletech, with a face value of INR 10 each, totaling an investment of INR 1 lakh. This move reflects Dixon’s confidence in the potential of India’s IT hardware sector, positioning itself to become a key player in a market currently dominated by international giants.
Dixon Technologies is making its move at an exciting time. The company has already signed contracts with some of the biggest names in the laptop industry, including:
These partnerships will allow Dixon to manufacture a range of IT hardware products locally, which will be assembled in India to meet growing domestic demand. As global companies look for ways to diversify their supply chains and reduce dependence on China, India has emerged as a key location for contract manufacturing.
Dixon’s move aligns with the government’s push for “Make in India”, which aims to turn the country into a global manufacturing powerhouse. By localizing production, Dixon Technologies can help reduce India’s dependence on imports and create jobs in the process.
Dixon’s strategy for growth is clear. The company is setting its sights on scaling up its IT hardware business rapidly. According to sources, Dixon Technologies aims to hit a target revenue of INR 3,500 crore by FY26 (the next fiscal year). This ambitious goal reflects the company’s growing confidence in its ability to capture a significant share of India’s IT hardware market.
The company’s long-term vision is even more impressive. Over the next six years, Dixon is targeting a revenue of INR 48,000 crore. This target puts Dixon in direct competition with global giants and shows that the company is prepared to invest heavily in expanding its manufacturing capabilities.
One of the biggest drivers of Dixon’s growth in the IT hardware space is the government’s Production-Linked Incentive (PLI) scheme. This scheme, which provides financial incentives for local manufacturing, has been a game changer for Indian manufacturers like Dixon Technologies.
Dixon has already seen success with smartphone manufacturing under the PLI scheme, working with brands like Samsung, Motorola, Xiaomi, and Jio. The government’s push for electronics manufacturing in India is expected to continue, with major incentives designed to make local production more attractive.
As Dixon ramps up its IT hardware manufacturing business, it stands to benefit from these policies, allowing it to compete with global players and capitalize on the growing demand for locally-produced IT products.
The Indian government is making moves to ensure that import duties on IT hardware products like laptops, tablets, and servers will become stricter in the coming years. By the end of December 2024, the existing import authorisation regime for these products is expected to end, making way for a new system that will require importers to apply for fresh authorisations starting January 1, 2025.
This regulatory shift is expected to boost demand for local manufacturing of IT hardware, which is why Dixon Technologies is positioning itself to capitalize on this change. By expanding its local production capabilities, Dixon can offer affordable, high-quality IT hardware to meet the needs of the Indian market.
As global IT hardware giants prepare to build their own manufacturing units in India, Dixon’s local expertise and strong relationships with international brands give it a competitive edge in the race to dominate India’s IT manufacturing sector.
With global players rushing to set up manufacturing plants in India, Dixon Technologies is seizing the opportunity to strengthen its foothold in the IT hardware market. The company’s focus on manufacturing laptops, components, and IT equipment locally not only aligns with the government’s vision but also puts it in a prime position to capture a significant portion of the growing demand for high-quality electronics in India.
Dixon’s growth story in the electronics space has been impressive so far, with the company making strides in smartphone manufacturing and now expanding into IT hardware. As more international brands look for local production partners in India, Dixon Technologies is well-positioned to become a leading player in both the smartphone and IT hardware manufacturing sectors.
Dixon Technologies’ decision to launch Dixon Teletech, a subsidiary focused on manufacturing IT hardware, is a clear signal of its ambitions to expand its footprint in the electronics manufacturing sector. With strong contracts already in place with major laptop brands like HP, Lenovo, Acer, and Asus, Dixon is poised for growth in a rapidly changing market.
The company’s long-term goals of achieving INR 3,500 crore in revenue by FY26 and INR 48,000 crore in six years show its commitment to becoming a leader in India’s IT hardware manufacturing space. With the government’s support and a strong focus on local production, Dixon Technologies is on track to play a key role in shaping the future of India’s electronics manufacturing sector.
